for the proposed combination of FMN through its affiliates and Honeywell Flour Mills Plc, a portfolio company of Honeywell Group. HGL is expected to dispose of a 71.69 per cent stake in HFMP to FMN at a total enterprise value of NGN80 billion.‘in line with the evolution of Honeywell Group and our vision of creating value that transcends generations.
The COVID-19 pandemic with its lock-downs also had an adverse effect on the Nigerian economy. This also affected the food industry, from production to processing and distribution. As a result, the most vulnerable households are badly affected by rising food prices.‘Nigeria is facing a food security crisis that is compounded by the COVID-19 global pandemic and its effects on the food value chain in the country.
Despite having vast arable land, Nigeria’s food production capacity remains insufficient to cater to its growing population of over 200 million people. The majority of this population growth is happening in urban areas. In 2020, Nigeria’s urban population was 52 per cent. This section of the country’s population has ballooned steadily over the last 50 years from 18.2 to 52 per cent.
With Nigeria being a signatory to the African Continental Free Trade Area , this merger positions Nigeria as a powerhouse for intracontinental food processing and distribution rather than being a dumping ground. This strategic placement will also boost the country’s export potential and tilt the scale in its favour.